This story was originally published on CRE Daily. Join 70,000+ commercial real estate professionals getting daily news, market insights, and industry analysis delivered straight to their inbox with the free CRE Daily newsletter.
Prologis posted a 12% jump in quarterly funds from operations and signed a record 67M SF of leases in Q2 2026.
The REIT's data center starts for 2026 have already exceeded its full-year guidance, fueled by $4B in new developments.
Prologis is weighing a $16.6B acquisition of Segro, with a formal offer decision looming amid continued market share expansion.
According to Commercial Observer, Prologis—the world's largest industrial REIT—reported outsized Q2 2026 results, propelled by robust leasing, surging demand for logistics assets, and a record-breaking push into data center development. CEO Dan Letter told analysts that the company's diversification beyond traditional warehouses is paying off, with major wins in both data center and energy business lines. The earnings call arrives as Prologis faces a critical deadline on a potential $16.6B acquisition of Segro, Britain's leading warehouse landlord, following initial rejection from Segro's board.
Core funds from operations hit $1.56B for the quarter, up nearly 12% from Q2 2025. The REIT's net income of $1.06B nearly doubled year-over-year, driven by both organic portfolio growth and significant new development. Prologis also raised its 2026 guidance for the second time this year, citing continued US and European market strength as vacancy tightens and rents edge higher.
With e-commerce-driven demand shifting the post-pandemic industrial landscape, Prologis has aggressively expanded its data center footprint, leveraging existing land and relationships to fuel growth. That strategy builds on Prologis' broader move into AI-focused real estate and energy infrastructure, extending beyond its warehouse roots. The REIT has successfully translated scale in logistics to digital infrastructure, betting that cloud providers and hyperscalers will require proximity to the same urban and distribution corridors occupied by traditional tenants. Yet CEO Letter acknowledged new hurdles—from local resistance to power constraints—clouding future data center supply.
This evolution follows years of pandemic-era warehouse absorption, when Prologis deployed capital at record scale, both domestically and internationally. Its massive $23B acquisition of Duke Realty, completed in 2022, set the stage for the company's continued dominance. The Segro bid signals that Prologis is not finished with cross-border expansion, eyeing leadership in both physical and digital logistics assets.
Source: Yahoo Finance Top News — This article was automatically imported from the source. Read full article at original source →
